STOR - Thursday April 18, 8:38 am Eastern Time
WALTHAM, Mass., April 18 (Reuters) - StorageNetworks Inc. (NasdaqNM:STOR - news), which provides storage software and services, on Thursday reported a narrower first-quarter net loss on lower costs and said it will cut 90 jobs, or 23 percent of its work force, to save cash.
The company said its net loss narrowed to $5.4 million, or 5 cents per share, from $32.9 million, or 34 cents per share, a year earlier.
Analysts loss estimates ranged from 13 cents to 17 cents a share, for an average of 14 cents, according to Thomson Financial/First Call.
StorageNetworks said total costs and expenses dropped to $35.2 million from $62.3 million.
Earnings before interest, taxes, depreciation, amortization, and noncash stock compensation was $3.8 million, reversing a year-earlier loss of $22.1 million.
Revenues rose to $31.6 million from $27.1 million.
The company said it will take a $400,000 charge in the second quarter to cover costs for severance and other expenses for the job cuts, which will leave it with a work force of about 300. It said it expects the cuts to reduce the amount of money it burns through by $600,000 a month.
At the end of the first quarter, StorageNetworks had $164.58 million in cash, down from the $185.83 million at the end of the previous quarter. |
